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Exporting Censorship and Internet Sovereignty - How China Uses its Economic Power, American Companies, and its Own Technology Companies to ...
Exporting
                Censorship and
                Internet Sovereignty
                How China Uses its Economic Power,
P UB LISHE D
JANUARY 202 1   American Companies, and its Own
                Technology Companies to Implement its
                Vision for a Controlled Internet Globally

                Jonathon Hauenschild, Policy Advisor
Exporting Censorship and Internet Sovereignty - How China Uses its Economic Power, American Companies, and its Own Technology Companies to ...
Executive Summary
EXPORTING CENSORSHIP AND INTERNET SOVEREIGNT Y

                                                 The West and China have two different, competing views of the internet based
                                                 on the values the two government systems promote. The West, led by America,
                                                 largely values democratic rule, freedom of speech, freedom of association,
                                                 religious liberty, and the ability to communicate with others free from
                                                 unreasonable, unwarranted government surveillance. Because of its communist
                                                 government, China eschews those freedoms, placing the ethereal terms “state
                                                 security” and “social stability” as some of its principle values.

                                                 The Chinese government promotes a theory of “internet sovereignty,” meaning
                                                 that each nation should have control of the information available to, and flowing
                                                 through, the internet. That is, the internet should stop at each country’s borders
                                                 before proceeding.
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                                                 Internet sovereignty is antithetical both to the nature of the internet and values
                                                 Americans hold dear. The internet was not designed with national borders in
                                                 mind, but as a way to maximize communications between individuals.

                                                 To implement its vision of internet sovereignty, China built—with the help of
                                                 American companies—a Great Firewall and Golden Shield. The Great Firewall
                                                 helps China control what websites its citizens can access, while the Golden Shield
                                                 helps the country censor content internally, controlling dissidents and journalists
                                                 critical of the Communist regime, along with any other content the Party
                                                 deems inappropriate.

                                                 Just as China used American companies to help build the Great Firewall, it is
                                                 using them to export its vision of internet sovereignty, along with other values,
                                                 to the United States. In return for access to the potentially lucrative Chinese
                                                 market, United States technology companies must agree to aid the government’s
                                                 censorship and share intellectual property with a local company, which is
                                                 ultimately controlled by the Communist party. Increasingly, China is pressuring
                                                 American companies to censor content created by Americans if those companies
                                                 want continued access to its market.

                                                 China is not content to rely on American companies to export its concept of
                                                 internet sovereignty and cultural values. As Chinese technology companies
                                                 and social media platforms grow in popularity, they help by censoring content,
                                                 providing access to telecommunications systems, and more.

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                                                 Introduction

                                                 The internet defies national borders. It is not designed to be segmented, with one
                                                 nation enjoying a different experience than another. Despite this, nation-states
                                                 have devised ways to control their citizens’ access to information. Nations like
                                                 Saudi Arabia and China believe the internet’s wealth of information is dangerous
                                                 and that people cannot be trusted either with unfettered access to the internet or
                                                 the ability to post information without censorship.

                                                 Of the nations that restrict their citizen’s access to the internet, only one—
                                                 China—actively seeks to export its values to other countries. The internet
                                                 values China espouses are antithetical both to the nature of the internet and to
                                                 the principles Western nations hold dear. China has the economic might and
                                                 global technological reach to influence foreign nations and private companies,
                                                 compelling them to adopt its values in exchange for access to its lucrative
                                                 economic market.

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Exporting Censorship and Internet Sovereignty - How China Uses its Economic Power, American Companies, and its Own Technology Companies to ...
The Chinese communist government controls its citizens’ online behavior in two
                                                 ways: by limiting what information from the outside world is available and by
                                                 censoring content posted within its borders. At least one author refers to this as
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                                                 the Great Firewall and Golden Shield.1 Restricting citizen’s access to information
                                                 otherwise broadly available means that there are functionally two different
                                                 internets: the internet as originally designed and implemented and that which is
                                                 behind the Great Firewall of China.

                                                 With two different internets—one unlimited and the other limited—conflict
                                                 between the two is inevitable. Each will fight for dominance, seeking to set both
                                                 technological and ethical standards for other countries. The vision that wins will
                                                 be able to control the internet’s future, including the free circulation
                                                 of information.

                                                 The unlimited internet has strategic advantages. It was first. It grows
                                                 exponentially day-by-day, year-by-year. The limited, or censored, internet
                                                 must react to the free internet. Above all, the free internet enjoys a broad
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                                                 economic, market-based support system. Many of the world’s largest companies,
                                                 headquartered in the United States, developed because of the unlimited internet
                                                 and they have vested interests in keeping the online ecosystem as broadly
                                                 accessible as possible.

                                                 The dominance of American technology companies must not be presumed,
                                                 though. The West’s, and specifically the United States’, innovation and
                                                 technological leadership is at risk. Adopting something of a neo-Marxist bent, the
                                                 West has decided that large innovators are essentially evil, having abandoned
                                                 some ethereal moral obligation to protect the public against propaganda,
                                                 disinformation, and radicalization. Often, claims that technology companies
                                                 have abandoned moral obligations go together with allegations that technology
                                                 companies are profiting obscenely by gathering and processing information about
                                                 consumers. Without really identifying concrete harms, the proposed solutions
                                                 attempt to regulate the free flow of information in the form of so-called privacy
                                                 legislation, antitrust, and other data governance restrictions.

                                                 These proposals both threaten the West’s internet technology dominance. They
                                                 threaten to balkanize the internet, with people in the U.S. enjoying a vastly
                                                 different experience than those in Europe. And state efforts in the U.S.—during the
                                                 2018 legislative session, legislators in nearly 30 states introduced some form of

                                                 1   See generally, James Griffiths, The Great Firewall of China, London: Zed Books, 2019. As discussed later, the Great Firewall controls
                                                     international internet traffic into China. The Golden Shield is a model of censorship focusing primarily on intra-country services.

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                                                 privacy proposal—threaten domestic balkanization. Legislation and restrictions
                                                 represent significant hurdles companies and innovators must overcome before
                                                 offering services. The legislation and restrictions come with huge compliance
                                                 costs, with Forbes estimating that U.S.-based Fortune 500 companies spent nearly
                                                 $8 billion complying with General Data Protection Regulation (GDPR) and the
                                                 California Attorney General estimates that California businesses will spend over
                                                 $55 billion initially complying with California Consumer Privacy Act (CCPA).

                                                 Even worse for the state of United States leadership in innovation is that these
                                                 privacy proposals represent an open door for China. Over the past decade,
                                                 Chinese technology companies have grown immensely. A decade ago, companies
                                                 like Huawei, Tencent, Baidu, and Alibaba, were virtually unknown entities.
                                                 Today, a number of those companies are some of the most successful, global
                                                 technology stocks. There is a danger that these companies born in the world
                                                 of strict government control and censorship will be unable either to break the
                                                 ties that bind them to the Communist government or become vessels willingly
                                                 exporting the Chinese vision of the internet to the West. While those companies
                                                 face restrictions unfamiliar to the West, they remain relatively unaffected by the
                                                 West’s proposals to regulate the technology sector.

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                                                 The Internet’s Nature, American
                                                 Values, and a Great Firewall

                                                 “The internet is borderless. Data moves wherever pathways exist, without regard
                                                 to legal boundaries or rules.”2 Those who designed the internet thought more
                                                 about moving data than jurisdictional boundaries. Because of this, the internet
                                                 works by breaking data into different packages, for lack of a better term. It sends
                                                 these packages on their way, with a specific destination in mind, but without
                                                 regard for the route they take. Even a simple email may be broken into hundreds,
                                                 or thousands, of different packages and sent across the country or globe before it
                                                 reaches its ultimate destination, even if that destination is down the street.3

                                                 The internet reflects fundamentally American values, such as freedom of speech,
                                                 freedom of expression, freedom of association, freedom of religion, and broadly
                                                 an ability to communicate with anyone else free of government surveillance.
                                                 Many of these values are expressed in the Constitution, particularly the
                                                 First Amendment.

                                                 2   Michael Chertoff, Exploding Data, New York, NY: Grove Press, 2016, p. 28.
                                                 3   See, e.g., ibid at p. 30 (explaining the internet layer of network communications—the internet layer itself is the third of five network
                                                     communications layers, but the most relevant for the current discussion).

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The Constitution limits the government. The First Amendment prohibits Congress
                                                 from making any law that restricts the freedom of speech, of the press, respecting
                                                 an establishment of religion, or prohibiting the free exercise thereof, and more.
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                                                 Similarly, the Fourth Amendment provides that “the right of the people to be
                                                 secure in the persons, houses, papers and effects against unreasonable searches
                                                 and seizures shall not be violated and no warrant shall issue but upon probable
                                                 cause…” Applied to the internet, the Fourth Amendment means that government
                                                 actors, in the form of law enforcement agencies, must secure warrants before
                                                 intercepting emails,4 wiretapping phone calls (including mobile phone), tracking
                                                 cell phone location data,5 accessing information stored on cell phones,6 and so on.

                                                 The pioneers of cyberspace went beyond the concepts expressed in the
                                                 Constitution though, declaring the then nascent technology to have “no elected
                                                 government, nor… likely to have one.” Continuing in the Declaration of the
                                                 Independence of Cyberspace, John Perry Barlow proclaimed “the global social
                                                 space we are building to be naturally independent of the tyrannies you seek to
                                                 impose on us. You have no moral right to rule us nor do you possess any methods
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                                                 of enforcement we have true reason to fear.”7

                                                 Over time, countries such as China have found ways to impose their tyrannies on
                                                 cyberspace. The Communist government of China does not place the same value
                                                 on speech, expression, and association that the West does, instead greatly fearing
                                                 the “free circulation of information.”8 The dangers to an authoritarian regime
                                                 represented by an unencumbered internet necessitates both tight control and
                                                 contortions of logic to justify that control. Thus, in Orwellian fashion,9 the Chinese
                                                 government claims that “freedom and order are twin sisters and they must
                                                 live together.”10

                                                 As in the United States, the internet was first introduced in China as a way for
                                                 academics to communicate with each other and the outside world. As more
                                                 Chinese citizens gained access, they started sharing information previously
                                                 suppressed by government censors—with one major source of censored news
                                                 being what today would be referred to as spam. Between the dissident spam

                                                 4    The Stored Communications Act, though, allows law enforcement to access emails stored more than 6 months without a warrant.
                                                      18 U.S.C. § 2703(a).
                                                 5    See, e.g., Carpenter v. United States, 585 U.S. ___, 138 S.Ct. 2206 (2018).
                                                 6    Riley v. California, 573 U.S. ___, 134 S.Ct. 2473 (2014).
                                                 7    John Perry Barlow, ‘A declaration of the independence of cyberspace,’ Electronic Frontier Foundation, February 8, 1996, https://www.
                                                      eff.org/cyberspace-independence.
                                                 8    Brian Crozier, The Rise and Fall of the Soviet Empire, Rocklin, CA: 1999, 491.
                                                 9    “War is peace. Freedom is slavery. Ignorance is strength.” George Orwell, 1984, 4.
                                                 10   Juxtapose efforts by the United States to promote an open internet to Chinese officials’ statements criticizing those efforts. China
                                                      views American advocacy for global online free speech as “naked political scheming.” Segal, Adam, The Hacked World Order, New
                                                      York, NY: PublicAffairs, 2016, 31.

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                                                 messages and the growing popularity of Google,11 the government realized it was
                                                 necessary to control the flow of online information.12

                                                 In place of a free and open internet, China talks about the need for “protecting
                                                 national sovereignty in cyberspace.”13 Internet sovereignty, as a policy, means that
                                                 each country should have the right to control content and access to its domestic
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                                                 markets. Behind the policy is the theory that “the web is not a unique technology,
                                                 transcending borders and international controls, but is like everything else, and
                                                 should be regulated accordingly.”14

                                                 Beyond just controlling access, China places a high value on protecting national
                                                 security. Chinese conceptions of national security, though, might be foreign
                                                 to someone from the West. Chinese law broadly defines national security and
                                                 encompasses the “economy, financial system, indigenous technology innovation,
                                                 and social stability.”15 Within the communist system, social stability includes
                                                 maintaining a tight control on dissent, preventing criticism of the government, the
                                                 rise of non-communist political parties, religious movements not approved by the
                                                 state, and so on.

                                                 China’s vision of internet sovereignty requires a censored version of the internet
                                                 for its citizens. Initially, this sounds difficult because of the nature of the
                                                 internet—a borderless network that enables mass communication—but with the
                                                 help of American companies, China’s desire for a censored internet experience,
                                                 became a reality.

                                                 11   As of 2002, Google “controlled about 25 percent of the Chinese market” and which government officials “never fully blocked.”
                                                      James Griffiths, The Great Firewall of China, London: Zed Books, Ltd., 2019, 62.
                                                 12   The free circulation of information made officials “feel [as if] they’ve got their backs against the wall.” Geremie R. Barme and Sang
                                                      Ye, “The Great Firewall of China,” Wired, June 19, 1997. https://www.wired.com/1997/06/china-3/.
                                                 13   See Samm Sacks, “Apple in China, Part 1: What does Beijing Actually Ask of Technology Companies,” Lawfare, February 22, 2016.
                                                      https://www.lawfareblog.com/apple-china-part-i-what-does-beijing-actually-ask-technology-companies.
                                                 14   Griffiths, The Great Firewall of China, 8.
                                                 15   Sacks, “Apple in China, Part 1,” above. (Emphasis added.)

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In the early 2000s, Yahoo, for instance, was designing an “internet guide” for use
                                                 in China. This “internet guide” both linked to party-sanctioned news sources
                                                 and agreed to censor content offensive to the government. Yahoo’s efforts to
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                                                 cooperate with the government were so pervasive that when a “Public Pledge on
                                                 Self-Discipline for the Chinese Internet Industry” was announced, it was the only
                                                 American company to sign the pledge. The pledge, among other things, required
                                                 companies to “refrain from ‘producing, posting or disseminating pernicious
                                                 information that may jeopardize state security and disrupt social stability,
                                                 contravene laws and regulations and spread superstition and obscenity” and
                                                 to “monitor the information publicized by users on websites… and remove the
                                                 harmful information promptly.”16

                                                 Yahoo, though, was not alone in helping the Chinese government build a censored
                                                 internet. Cisco helped provide the hardware necessary for China to deploy the
                                                 Great Firewall and Golden Shield. According to James Griffiths, the company
                                                 principally known for its routers and networking products “began supplying
                                                 filtering and surveillance equipment to Chinese censors in the early 1990s.”17
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                                                 Sprint, under a contract with ChinaTelecom, was responsible for the infrastructure
                                                 that essentially connected the Chinese people to the internet.

                                                 Worth noting is that many U.S. companies involved in building China’s internet
                                                 infrastructure could argue that it was impossible to foresee the pervasive
                                                 censorship that exists today. With history as a guide and the well-known nature
                                                 of communist regimes censoring news, though, one can assert that the Great
                                                 Firewall and Golden Shield were completely foreseeable outcomes.18

                                                 China’s conceptions of internet sovereignty have been around since, at least,
                                                 2010. In 2014, China started promoting it internationally, with calls for countries
                                                 to “establish a multilateral, democratic, and transparent international internet
                                                 governance system.”19 With hardly any support for its vision of a censored internet,
                                                 China decided to continue promoting the concept and working behind the scenes
                                                 at bodies like the Internet Corporation for Assigned Names and Numbers (ICANN)
                                                 to export its values, including the concepts of internet sovereignty and social
                                                 stability, and to utilizing its greatest asset: its economic markets.

                                                 16   Ibid at 64. (Emphasis added.)
                                                 17   Griffiths, The Great Firewall of China at 29-30.
                                                 18   As recounted by James Griffiths, as early as 2004, Yahoo was acting as “Chinese police auxiliary”, providing information that would
                                                      help government authorities arrest a journalist. See, The Great Firewall at 64-65.
                                                 19   Segal, The Hacked World Order, at 32.

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                                                 China Exports its Values by
                                                 Controlling Access to its Market

                                                 Access to a market can be a powerful motivator. The promise of access to a
                                                 massive economic market can be even more powerful. China partially realized
                                                 the gravity of its economic power when developing the Great Firewall and
                                                 Golden Shield. Initially, much of the censorship was “outsourced” to companies
                                                 participating in the internet space, both service providers and edge services.20 The
                                                 government, though, has taken an increasingly greater role in managing content.

                                                 China has realized its ability to export its vision of a censored internet by tapping
                                                 into its economic power. China enjoys economic power in two different ways: T
                                                 by granting foreign companies access to its market and through creating strong,
                                                 global technology and communications firms.

                                                 20   The term “edge” denotes any entity that provides services through a website, web service or application, or hosts user-generated
                                                      content. Examples of edge services in the United States include Microsoft, Amazon, Facebook, and Oracle.

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Access to the Chinese economic market is a powerful tool for China. Technology
                                                 companies, such as Google, Microsoft, Apple and others have long wanted access
                                                 to China’s billion residents and their money. As of several years ago, for example,
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                                                 China accounted for a significant percentage of Apple’s revenue—$16 billion
                                                 compared to $74.6 billion in quarterly revenue.21 While exact figures are not
                                                 provided, overseas revenue accounts for most technology companies’ profits. In
                                                 2014, Google (now Alphabet) “earned 58 percent of its revenue from outside the
                                                 United States; Facebook 55 percent…”22

                                                 China flexes this type of economic power in several different ways. If a western
                                                 technology company wants access to the Chinese market, the company must
                                                 adopt China’s vision of a censored internet, at least for products distributed in
                                                 China.23 Apple, as an illustration, promotes the security and privacy features of its
                                                 products in the United States, but for devices sold in China, it removes apps from
                                                 the AppStore upon request from the Chinese government. Some of these apps
                                                 allowed users to circumvent the Great Firewall while others helped protestors
                                                 track police movements. The company also acceded to demands that it store data
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                                                 generated by Chinese residents to servers operated by China Telecom, the state-
                                                 owned telecommunications network.

                                                 The second way China flexes economic power is through corporate governance.
                                                 Major companies that want access to the Chinese market must create a joint
                                                 venture with a local Chinese company. While this may sound somewhat
                                                 innocuous, the devil is in the details. There is no such thing as a private company
                                                 in China, at least as the West understands the term “private.”

                                                 The government significantly influences, if not controls most or all the private
                                                 businesses in China, and the Communist Party runs the government. There is
                                                 no separation between the party and the government. The Chinese Communist
                                                 Party boasts that “68 percent of China’s private companies had party bodies by
                                                 2016 and 70 percent of foreign enterprises.”24 The party’s goal is to have organs
                                                 in 95 percent of the companies. The presence is not merely salutary, as it is

                                                 21   Segal, Adam, The Hacked World Order, New York, NY: PublicAffairs, 2016, 20.
                                                 22   Ibid.
                                                 23   The government requires that “foreign companies wanting” to do business in the country open joint ventures if they fall into one
                                                      of 35 categories. The categories roughly align with the government’s economic priorities, which include nearly all categories of
                                                      technology, including artificial intelligence, autonomous vehicles, 5G, robotics, and so on. See generally, U.S.-China Economic
                                                      and Security Review Commission, How Chinese Companies Facilitate Technology Transfer from the United States, by Sean O’Connor
                                                      (Washington, D.C., May 6, 2019), https://www.uscc.gov/sites/default/files/Research/How%20Chinese%20Companies%20
                                                      Facilitate%20Tech%20Transfer%20from%20the%20US.pdf and Lingling Wei and Bob Davis, “How China Systematically Pries
                                                      Technology From U.S. Companies,” The Wall Street Journal, September 26, 2018, https://www.wsj.com/articles/how-china-
                                                      systematically-pries-technology-from-u-s-companies-1537972066.
                                                 24   Richard McGregor, “How the state runs the business in China,” The Guardian, July 25, 2019. https://www.theguardian.com/
                                                      world/2019/jul/25/china-business-xi-jinping-communist-party-state-private-enterprise-huawei.

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                                                 instrumental in corporate decisions.25

                                                 The Communist Party exerts control over foreign businesses, whether or not those
                                                 businesses are technology companies. Giants like Walmart, Disney, and others
                                                 have party apparatuses active in their Chinese operations. The party presence
                                                 may force corporations to engage in conduct, such as allowing workers to
                                                 “unionize” where such actions may be frowned upon in the United States. When
                                                 company workers are unionized in China, the party also controls those unions.

                                                 Party presence and control of joint ventures causes several problems. China
                                                 requires companies to censor content domestically, transfer intellectual property,
                                                 and leads to viewpoint censorship internationally for continued access to the
                                                 Chinese market.

                                                 The Great Firewall and Golden Shield are enforced both by government censors
                                                 and through private sector cooperation. In return for access to the Chinese
                                                 market, China demanded that Google, Facebook, and Twitter censor material

                                                 25   “In the past, Chinese state-owned listed companies had customarily filed misleading prospectuses ahead of their stock exchange
                                                      listings, omitting the party’s pivotal role in the hiring and firing of senior executives. Similarly, company boards had long been
                                                      legally and theoretically independent of the party, but not in practice. ‘The same individual who is chairing a party committee
                                                      meeting on a Monday might well be chairing a board meeting later in the week,’ notes a 2018 report on Chinese corporate
                                                      governance.” Ibid.

                                                                                                                                                                                           12
deemed inappropriate by the party and government. The technology companies
                                                 refused and, consequently, were banned in China. Similarly, as previously
                                                 mentioned, China demanded that Apple move data about Chinese users to
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                                                 government-controlled servers. Yahoo, for continued access, acquiesced to
                                                 government demands both to censor content and cooperate with the government
                                                 identifying dissidents.

                                                 When a foreign technology company wants access to the Chinese economic
                                                 market, it must create a joint venture with a local Chinese company. Through
                                                 the newly created joint venture, the local Chinese company obtains access
                                                 to the foreign technology company’s intellectual property. Because the local
                                                 party is controlled by the government vis-à-vis the communist party, the
                                                 government secures the foreign intellectual property. Rather than respect the
                                                 foreign company’s intellectual property, the government seeks to replicate the
                                                 technology illegally, provide a Chinese company with the stolen property, and
                                                 then undercut the foreign company, flooding the market with products artificially
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                                                 low due to subsidization. This is a model that has worked well, for example, for
                                                 the telecommunications giant Huawei.

                                                 Not content to implement its domestic vision of the internet and steal foreign
                                                 intellectual property, China is starting to realize the ability to export its cultural
                                                 views and vision of the internet through American companies. In late 2019, both
                                                 Activision and the National Basketball Association (NBA) have either removed
                                                 foreign content China deemed inappropriate or apologized for such content.

                                                 In the case of Activision, it owns a game developer known as Blizzard, which in
                                                 turn created a game called Hearthstone. Hearthstone is an online game, which
                                                 provides users not only a platform for playing with each other, but also for
                                                 communicating with each other. After a Hearthstone match, a player from Hong
                                                 Kong promoted a pro-democracy message supportive of protests occurring in his
                                                 home country. Several other players expressed support for Hong Kong during the
                                                 interaction. As a result, Blizzard announced a lengthy ban for all involved, and
                                                 especially for the user who started the discussion.

                                                 As a company, Blizzard enjoys a fanbase in China, access to an esports market
                                                 some estimate at $3 billion, and the Chinese technology company Tencent
                                                 owns a 5 percent stake in the company. Blizzard’s actions censoring content
                                                 and punishing users who dared express a pro-democracy message appear to be
                                                 nothing more than pandering to the Chinese Communist government in exchange
                                                 for continued access to a market.

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                                                 Similarly, Houston Rockets general manager Daryl Morey tweeted support for
                                                 the pro-democracy movement in Hong Kong. Immediately China objected, and
                                                 several Communist Party controlled companies, such as Tencent and Luckin
                                                 Coffee, threatened to cut ties with the NBA. To maintain the lucrative contracts
                                                 and access to the Chinese market, NBA Commissioner Adam Silver apologized for
                                                 the statements. Even NBA superstar LeBron James trumpeted what could have
                                                 been Communist Party talking points, stating he believed that Morey was “either
                                                 misinformed or not really educated on the situation.”

                                                 Through access to the market, China exported its values and vision of the internet
                                                 to the United States. As when the Great Firewall was created, China relied on
                                                 private companies to enforce its restrictive standards. By relying on private
                                                 companies, such asBlizzard and the NBA, China effectively superseded the values
                                                 represented in the American Constitution, while both the NBA and Blizzard were
                                                 willing participants in this effort.

                                                 The second way China enjoys economic power is through strong technology
                                                 companies of its own. Of the top ten global technology companies in 2019, two
                                                 were Chinese (Alibaba and Tencent). That number of top global companies
                                                 increases to five for the top twenty firms (Meituan Dianping, JD.com, and Baidu).
                                                 More importantly, Chinese firms are among the fastest growing technology firms.

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The enormous growth of Chinese companies is evident when comparing size and
                                                 revenue both over the past few years. In 2014, Tencent had a market cap value
                                                 of $132 billion, Baidu a value of $59 billion, and JD.com a value of $29 billion.
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                                                 For the same year, the top American companies included Apple, with a value of
                                                 $529 billion, Google with a value of $377 billion, Facebook with a value of $157
                                                 billion, and Amazon rounding out the top 4 with a value of $144 billion. In 2019,
                                                 Alibaba, which did not make the list of the most valuable global technology
                                                 companies in 2014, had a market cap value of $402 billion; Tencent, $398 billion;
                                                 JD.com, $39 billion; and Baidu, $38 billion. Microsoft led American companies,
                                                 claiming the number 1 spot with a value of just over $1 trillion, with Amazon and
                                                 Apple rounding out the top three with values of $888 billion and $875 billion,
                                                 respectively.

                                                 Chinese social media companies are some of the most popular global platforms.
                                                 As of early 2020, Tencent’s WeChat boasted more than 1 billion users, which
                                                 places it just behind Facebook Messenger and WhatsApp. Sina Weibo, partially
                                                 owned by Alibaba, claimed to have more than 430 million active monthly
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                                                 users (compare with Twitter’s estimated 326 monthly users). TikTok, owned by
                                                 Chinese Company ByteDance, had nearly 1.5 billion users globally and still enjoys
                                                 significant growth in the United States.

                                                 Because all the platforms are Chinese, they must comply with China’s internet
                                                 governance standards, which means censoring content at the government’s
                                                 request. For some companies, such as WeChat or Weibo, the impact of this
                                                 censorship falls primarily in China. For other companies, though, such as TikTok,
                                                 this mandated censorship means that Americans are finding some posts removed
                                                 from the platform. This censored content includes posts promoting the pro-
                                                 democracy protests in Hong Kong and others critical of the
                                                 Communist government.26

                                                 Chinese telecommunications firms, similarly, enjoy widespread popularity. The
                                                 popularity is due, in large part, to low product prices. The low product prices,
                                                 in turn, are created through both intellectual property theft and government
                                                 subsidization. The two companies principally benefitting from this arrangement
                                                 are Huawei and ZTE. Huawei, in its due turn, deserves a bit of attention.

                                                 26   If the censorship were occurring at the behest of the United States’ government, users would have recourse through the court
                                                      system, as the Constitution’s First Amendment would bar the government from engaging in viewpoint discrimination. Since the
                                                      Constitution, though, only regulates government conduct, private companies are free to remove content based on viewpoint, if
                                                      they wish. Additionally, the Constitution only applies to the United States’ government and, in some instances, to state and local
                                                      governments. Given the relationship between the Communist Party and the government of China, some interesting questions
                                                      are raised when the Chinese government directs the censorship of content posted by Americans. In this case, the answer is likely
                                                      increased transparency, so that American users understand that the Chinese government does not share their values, rather than
                                                      any form of government manipulation of the market.

                                                                                                                                                                                           15
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                                                 Before that, though, it is worth noting that telecommunications firms represent
                                                 unique vulnerabilities both to national security and for exporting China’s internet
                                                 governance standards. More than social media platforms or other technology
                                                 companies, telecommunications firms represent the backbone of the internet.
                                                 The internet is a hybrid technology, part telephonic services and part computers,
                                                 with the two services becoming increasingly integrated. The next generation of
                                                 mobile services, 5G or small cell technology, is as much a cloud service as it is a
                                                 telecommunications service.

                                                 Because of the integration between computers and telecommunications service,
                                                 a savvy telecommunications product provider could use its technology both to
                                                 listen in to calls and to censor traffic. Now, there is little evidence that Huawei
                                                 or ZTE are engaging in such nefarious services, but that does not mean they
                                                 could not. A recent study by Britain’s GCHQ, for example, found no evidence that
                                                 Huawei’s firmware and software included backdoors the Chinese government
                                                 could access. It also found, though, that the coding was incredibly complex and
                                                 full of bugs. The code complexity and bugs would require Huawei to push updates
                                                 to the products. Between the need constantly to update software and Chinese
                                                 laws requiring companies to aid the government in an emergency if so demanded,
                                                 the potential exists both for massive surveillance and for the forced adoption of
                                                 Chinese internet values.

                                                                                                                                       16
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                                                 Conclusion

                                                 China’s vision of the internet and the values it promotes are vastly different from
                                                 the vision and values espoused by the internet’s creators. The internet’s creators
                                                 programmed western, and particularly American, values into the internet. These
                                                 values include freedom of speech, freedom of expression, a desire to be free of
                                                 unwarranted government surveillance, and the ability to communicate globally
                                                 with anyone at any time.

                                                 China values an internet based on national “internet sovereignty” and eschews
                                                 the free circulation of information—which is the single greatest threat to an
                                                 authoritarian government. Its vision has led to the creation of a heavily censored
                                                 internet. By promising, granting, or threatening to close access to its market,
                                                 China has started to export its cultural values and vision of the internet beyond
                                                 its national borders. Both Chinese and American companies are starting to
                                                 censor messages the Chinese Communist Party deems inappropriate. If this trend
                                                 continues, Americans and American companies will be complicit in allowing
                                                 China’s standards to dominate the globe, replacing the very values Americans
                                                 hold dear.

                                                                                                                                       17
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